World get ready! Markets could be in turmoil next week if Trump wins.

Elections move markets, and depending on who you think you will win, you can either make or lose money on the result.

It’s a little like the Melbourne Cup this week. You make a judgement call and back a horse, and if it comes good you are ordering champagne.

In terms of elections, there hasn’t been one in living memory like the US Presidential race, which concludes in the next week.

The markets are spooked at the possibility of a Trump win, and a range of global pundits are forecasting a Trump Slump around the world if he gets in.

If Hillary Clinton is elected the markets will breathe a sigh of relief. It will be “business as usual” but they are likely to have a slight jump of enthusiasm, before calling back as the problems penetrate the nation’s psyche.

If Trump wins and the markets fall, that could be a buying opportunity. You will be ahead if the market decides that Trump is not as scary as everyone thinks, and then starts to rebound.

If you are already in the market and Hillary wins, then perhaps you might take some profits and sell some shares on the expected bounce.

You will have done well if markets revert to type and the surge of relief at a Hillary victory proves short-lived.

So how could a Trump victory impact markets?

The Brookings Institution predicts a 10 to 15 percent slide on global markets after a Trump triumph, while Macroeconomic Advisers are forecasting a milder 8 percent drop.

Further analysis from two US academics, Justin Wolfers and Eric Zitzewitz, says a Trump win would trigger falls of up to 15 percent on the US, UK and Asian share markets could fall by 10-15 per cent.

The place most Australians are likely to feel this is in their superannuation balances.

Aussie super funds invest internationally and you can be assured that the investment managers at your fund are pondering what defensive measures they can take to protect balances if Trump wins.

Cash is looking good, because that means they’ll stay on the sidelines and wait to see what happens, but will have cash to deploy at the right time.

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